Workplace Enhancement Proposal Choose a company of which you are familiar with the culture and workplace policies. Perhaps this is a company that you have worked in or currently work in. The chief people office (CPO) at this company is aware that you are learning concepts of behavioral economics. She is concerned about trends in a tight labor market and would like to increase employee retention. She is asking you to outline one company policy/practice/benefit recommendation that relies on a tenet(s) of behavioral economics and will be reasonably cost-effective to implement. In other words, the savings in employee turnover reduction should more than pay for your recommended policy/practice/benefit. The CPO is a busy person and wants your recommendation to be fewer than 500 words. Addressed to the CPO as an internal memo, your paper should include the following components:
• Name of company, number of employees, industry (for the instructor’s benefit)
• Identify the relevant current policy/practice/benefit (if you are recommending a policy/practice/benefit change)
• The tenet(s) of behavioral economics that you are relying upon
• Link between your proposal and expected increase in employee retention
Please pick a famous company so that I can understand the content
Answer preview
One of the tenets applied in employee retention enhancement in the workplace is loss aversion. The principle is based on the concept that individuals are highly motivated by the threat of loss instead of rewards. Therefore, as the Chief Person Officer at Google, you can address a tight labor market by recognizing the dynamics of loss aversion in retention. One of the policies that should be employed to minimize employee turnover is attaching a small penalty for opting out. This approach is useful rather than offering a higher reward for remaining in the company. The essential aspect of overcoming high turnover rates among the staff is to inform them about the opportunities they would miss if they left the business. For example, telling the team about missed promotions, growth, and future opportunities will convince them to remain at the organization. The concept of loss aversion is that individuals thrive on intrinsic motivators, which is crucial for staff engagement (French, 2019). Motivational factors such as fear of losing the sense of purpose, autonomy, and mastery of the subject will drive workers to remain in the organization for personal satisfaction. Therefore, you can increase employee retention through rewards and implementing clauses to penalize failures. Integration of the incentives and behavioral economic principles such as loss aversion is useful in shaping employee loyalty. Besides, this strategy is beneficial in influencing employee behavior and engagement at work.
[498 Words]